Investing
Overview
My investing philosophy is based on the 3 D’s; Dollar Cost Averaging, Diversification and Dedication.
- Dollar Cost Averaging – is simply a wealth strategy that involves a steady and consistent schedule of deposits. It is your best defence against the new norm in the stock market – volatility!
- Diversification – the process of allocating capital in a way that reduces the exposure to any one particular asset or risk. A common path towards diversification is to reduce risk or volatility by investing in a variety of assets. This strategy is specifically designed to reduce overall portfolio risk.
- Determination – need to stick to your plan, to not overreact and trust the process.
RRSP
A tax deferred way of saving for retirement by deferring your taxes now and paying a (hopefully) lower tax when the income is used in retirement. Other advantages include the Home Buys Plan and Spousal RRSP contributions.
TFSA
A very useful account that is underused by most Canadians. Depending on your income level, it may be a better choice than an RRSP. Income that grows tax free is the best income. You just don’t get to defer taxes now.
*A combination of both accounts, used to the best tax advantage for you, is the ultimate goal.
RESP
Education savings plans should absolutely be considered for your children. Post secondary education is no longer just an option. It is almost mandatory in the world we live in. Finding the right plan that fits your budget and your goals is the hard part. Hidden fees and difficult rules regarding withdrawals etc. suggest that using an advisor to help you with this is a must!
Non-registered
If you have excess capital you want to invest beyond your RRSP and TFSA savings, there are a variety of options for you. Avoid the get rich quick schemes and enter into a long term investment only when you fully understand the implications.
Insurance
Have your cake and eat it too. Certain insurance products allow you to shelter capital inside the insurance policy and have it invested as well. Higher returns and more liquid than typical fixed income investments such as GICs. Useful privately and corporately.
Other Products
For business owners we have Group Health and Group Retirement plans that help you retain quality people. Very important in this competitive workplace.